Technical Analysis of the Currency Market

225 Pages·2008·5.49 MB·English

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Technical
Analysis of the
Currency Market
Classic Techniques
for Profiting from
Market Swings
and
Trader Sentiment
BORIS SCHLOSSBERG
John Wiley &Sons, Inc.
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Technical
Analysis of the
Currency Market
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Founded in 1807, John Wiley & Sons is the oldest independent publishing
company in the United States. With offices in North America, Europe, Aus-
tralia, and Asia, Wiley is globally committed to developing and marketing
print and electronic products and services for our customers’ professional
and personal knowledge and understanding.
The Wiley Trading series features books by traders who have survived
the market’s ever changing temperament and have prospered—some by
reinventing systems, others by getting back to basics. Whether a novice
trader, professional, or somewhere in-between, these books will provide
the advice and strategies needed to prosper today and well into the future.
For a list of available titles, visit our web site at www.WileyFinance.com.
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ffirs.qxd 3/14/06 1:48 PM Page iii
Technical
Analysis of the
Currency Market
Classic Techniques
for Profiting from
Market Swings
and
Trader Sentiment
BORIS SCHLOSSBERG
John Wiley &Sons, Inc.
www.fx1618.com
ffirs.qxd 3/14/06 1:48 PM Page iv
Copyright © 2006 by Boris Schlossberg. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted
in any form or by any means, electronic, mechanical, photocopying, recording, scanning,
or otherwise, except as permitted under Section 107 or 108 of the 1976 United States
Copyright Act, without either the prior written permission of the Publisher, or authorization
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Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030,
[phone], fax [phone], or online at http://www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their
best efforts in preparing this book, they make no representations or warranties with respect
to the accuracy or completeness of the contents of this book and specifically disclaim any
implied warranties of merchantability or fitness for a particular purpose. No warranty may
be created or extended by sales representatives or written sales materials. The advice and
strategies contained herein may not be suitable for your situation. You should consult with a
professional where appropriate. Neither the publisher nor author shall be liable for any loss
of profit or any other commercial damages, including but not limited to special, incidental,
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For general information on our other products and services or for technical support,
please contact our Customer Care Department within the United States at [phone],
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Library of Congress Cataloging-in-Publication Data:
Schlossberg, Boris.
Technical analysis of the currency market : classic techniques for profiting
from market swings and trader sentiment / Boris Schlossberg.
p. cm.—(Wiley trading series)
ISBN-13: 978-0-471-74593-8 (cloth)
ISBN-10: 0-471-74593-6 (cloth)
1. Foreign exchange futures. 2. Foreign exchange market. 3. Speculation.
I. Title. II. Series.
HG3853.S35 2006
332.4'5—dc22
2005031905
Printed in the United States of America.
10 9 8 7 6 5 4 3 2 1
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To my partner Kathy
without whom
none of this would be possible
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Contents
CHAPTER 1 FX 101 1
CHAPTER 2 Is It All Just Random? 25
CHAPTER 3 The Secret to Trading 29
CHAPTER 4 Show Me the Data! 41
CHAPTER 5 Trend Is Your Friend? 59
CHAPTER 6 Gauging Range 79
CHAPTER 7 Fibs Don’t Fib 99
CHAPTER 8 Patterns and Antipatterns:
Know Your Mark 113
CHAPTER 9 Know Yourself, Know Your Setup 143
CHAPTER 10 Setups! Setups! Setups! 161
Glossary 185
Index 207
vii
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